Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

VanEck

  •   14 December 2022
  •      
  •   

Australia’s first Carbon Credits ETF added to platforms

Sydney, 14 December, 2022 – VanEck today announced that its Global Carbon Credits ETF (Synthetic) (ASX: XCO2) has been added to key platforms managed by HUB24, AMP and BT.

Since its launch on ASX on 13 October 2022, XCO2 has returned 16.39%1 (after fees) to 12 December 2022 and is continuing to attract strong interest from platforms, financial advisers and brokers.

Arian Neiron CEO and Managing Director VanEck, Asia Pacific, said: “XCO2 has generated a great deal of investor interest, well ahead of our expectations. We believe this growth will continue into 2023.”

XCO2 is an Australian first that offers instant access via the ASX to an investment in carbon markets which are viewed as a vital tool to help in the fight against climate change. XCO2 tracks the ICE Global Carbon Futures Index, which sources carbon credit futures prices from the four most actively traded and largest carbon markets and emission trading schemes (ETS) in the world. These are the European Union Emissions Trading Scheme, the Western Climate Initiative (California Cap and Trade Program), the Regional Greenhouse Gas Initiative (RGGI) and the UK Emissions Trading Scheme.

Since its launch XCO2 has been added to HUB24 Invest - CHOICE, AMP MyNorth Investments, BT Panorama Investments and ANZ Grow Wrap Investments, with a number of other platforms signalling XCO2 will be added imminently.

“In the time since we launched XCO2, we have been impressed by the desire to learn about this new asset class. In addition, as part of an overall review, we’ve decided to reduce XCO2’s management fee. The review also examined our operational performance and efficiency,” said Neiron.

“While XCO2’s new fee is in line with similar investments, it provides exposure to the largest and most liquid carbon markets in the world and is managed by a pioneering global firm with an established history in alternative asset classes and futures trading.”

“Carbon credits have historically been lowly correlated to mainstream asset classes and can be potentially used as a hedge against the impact of carbon emissions risks on investor portfolios. XCO2 allows investors to take advantage of the potential rise of carbon credit prices by giving investors access to the biggest global emissions trading schemes.”

“Any rise in carbon prices may also support responsible investing and incentivise pollution reduction schemes and policies as governments work harder to meet global climate agreements. Companies too are better aligning their production with environmental, social, and governance (ESG) investment goals, and many are using carbon credits to do this,” said Neiron.

1 Source: Morningstar Direct

 

banner

Most viewed in recent weeks

Which generation had it toughest?

Each generation believes its economic challenges were uniquely tough - but what does the data say? A closer look reveals a more nuanced, complex story behind the generational hardship debate. 

Maybe it’s time to consider taxing the family home

Australia could unlock smarter investment and greater equity by reforming housing tax concessions. Rethinking exemptions on the family home could benefit most Australians, especially renters and owners of modest homes.

The best way to get rich and retire early

This goes through the different options including shares, property and business ownership and declares a winner, as well as outlining the mindset needed to earn enough to never have to work again.

A perfect storm for housing affordability in Australia

Everyone has a theory as to why housing in Australia is so expensive. There are a lot of different factors at play, from skewed migration patterns to banking trends and housing's status as a national obsession.

Supercharging the ‘4% rule’ to ensure a richer retirement

The creator of the 4% rule for retirement withdrawals, Bill Bengen, has written a new book outlining fresh strategies to outlive your money, including holding fewer stocks in early retirement before increasing allocations.

Simple maths says the AI investment boom ends badly

This AI cycle feels less like a revolution and more like a rerun. Just like fibre in 2000, shale in 2014, and cannabis in 2019, the technology or product is real but the capital cycle will be brutal. Investors beware.

Latest Updates

Weekly Editorial

Welcome to Firstlinks Edition 628

Australian investors have been pouring money into US stocks this year, just as they start to underperform the rest of the world. Is this a sign of things to come? This looks at 50 years of data to see what happens next.

  • 11 September 2025
Exchange traded products

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

Retirement

We need a better scheme to help superannuation victims

The Compensation Scheme of Last Resort fails families hit by First Guardian and Shield losses, as well as advisers who are being wrongly blamed for the saga. It’s time for a fair, faster, universal super levy solution.

Investment strategies

5 charts every retiree must see…

Retirement can be daunting for Australians facing financial uncertainty. Understand your goals, longevity challenges, inflation impacts, market risks, and components of retirement income with these crucial charts.

Economy

How bread vs rice moulded history

Does a country's staple crop decide elements of its destiny? The second order effects of being a wheat or rice growing country could explain big differences in culture, societal norms and economic development.

Investment strategies

Small caps are catching fire - for good reason

Small caps just crashed the party like John McClane did in the movie, Die Hard - August delivered explosive gains. With valuations at historic lows, long-term investors could be set for a sequel worth watching.

Defensive growth for an age of deglobalisation, debt and disorder

Today’s new world order appears likely to lead to a lower return, higher risk investment environment. But this asset class looks especially well placed to survive, thrive, and deliver attractive returns to investors.

Economy

Will we choose a four-day working week?

The allure of a four-day week reflects a yearning for more balance in our lives. Yet the reliability of studies touting a lift in productivity is questionable and society may not be ready for such a shift anyway.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.